Let Uber and Lyft Ride on Outside Manhattan
May 2, 2016
Uber’s convenient services and reasonable prices are often taken for granted within New York City. The nearly ubiquitous ride-hailing service is the drunk New Yorker’s 2 a.m. best friend. However, the widespread use of this service masks a little known truth: outside of the comfort of the city’s five boroughs, a frightening reality awaits — an entire state devoid of a single Uber or Lyft.
Yes, it’s unfortunately true, New York State has banned the use of unofficially sanctioned ride-hailing services since long before Uber’s rise. New York State law makes it almost impossible for outside companies to provide the proper insurance to their drivers throughout the state, and Uber has not fared well against these regulations — other than in New York City, where the New York City Taxi & Limousine Commission begrudgingly struck an agreement with the rideshare company.
Uber and Lyft have tested these restrictions time and time again — the two companies have spent nearly a million dollars since 2013 attempting to fight the regulation. Their attempts to open up the New York transportation market to technologically savvy competitors have been met with vehement criticism by taxi drivers and owners of private car services. However, their luck may soon change, as over the next seven weeks New York lawmakers will be meeting to discuss the fate of hundreds of bills, one of which concerns the use of app-based ride-hailing services throughout the rest of the state.
This has reignited the debate over the potential consequences of non-yellow transportation. Many pro-taxi lobbyists have argued that Uber’s rise could lead to a transportation monopoly that would leave the iconic yellow cabs as nothing more than nostalgic reminders of the past. But this may not be necessarily a bad thing. The intense regulation and governmental support given to the taxicab industry has certainly helped standardize transportation throughout New York City, and influenced the rest of the state, but if customers prefer Uber, they should be allowed to have it. While it may be frightening for cab drivers to realize that rideshares are overwhelmingly preferred to traditional yellow cabs, this reality should not inspire heavier regulations, but instead push the taxi industry to fix its faults.
Instead, the mass panic for yellow-cab supporters has resulted in a state that is beyond behind in transportation. The people of Syracuse are forced to overpay for taxis, while those living in more than 60 smaller cities throughout the U.S. can Uber or Lyft themselves to their heart’s content. Competition should not continue to scare legislators into restricting thriving industries. The people of New York deserve the right to choose whether to surge or not to surge — that is not a lawmaker’s decision.
Opinions expressed on the editorial pages are not necessarily those of WSN, and our publication of opinions is not an endorsement of them.
A version of this article appeared in the Monday, May 2 print edition. Email Paris Martineau at [email protected].
Michael • May 2, 2016 at 11:55 am
Same logic applies to hundreds of small cities all over New York State.
It doesn’t make sense “legalizing” Uber on a state level – it strips local municipalities of billions of local revenue which ends up in (yes, they are offshore-based) uber corporate accounts.
I feel for Uber investors who need to endlessly pump this fiction to support massive Uber’s $70 billion valuation but doing it in violation of existing active laws is just a sham.
Michael • May 2, 2016 at 11:50 am
Uber takes approximately 25-35% from every ride provided and calls it a “profit”.
Taxi driver was paying same 25-35% to the City of New York for his taxi license,
disability surcharges, MTA tax, etc. – which I hope you realize – was 100% municipal revenue that was benefitting all of us.
It’s not that a difficult math really – what uber refuses to pay (which it would if it would
follow existing laws and regulations) to the City of New York – that same amount – ends
up being “Uber’s profit”. Nice transformation, wouldn’t you say?
And apps or technology have nothing to do with it. You can factually check that many taxi apps (TaxiMagic, for example) pre-dated Uber by at least a few years.
Innovation is one thing, but not complying with existing legal and regulatory framework is another.